Self employed, do I count perks from the employer as profit

wantoknow_2

Hi, I am registering as a self employed. My employer would like to help me with child care cost and pay nursery when I am working for him. Would it be as a profit (earnings) when I am doing my accounts. Many thanks

Pennywise

If you're self employed, he isn't your "employer". Are you sure you're self employed? Have you gone through the HMRC employment status indicator. If the person engaging you is paying child care costs etc., then I really don't think you're self employed at all - it's the kind of thing an employer would provider, not a client of someone self employed.

How many other clients do you work for? How much of your own personally-bought equipment do you use for this work? How much control and supervision are you under, etc? These are some of the criteria for determining whether or not you're self employed.

You and your "employer" can't just say that you're self employed - it's dependant upon HMRC rules.

Aquamania

wantoknow wrote: »

Hi, I am registering as a self employed. My employer would like to help me with child care cost and pay nursery when I am working for him. Would it be as a profit (earnings) when I am doing my accounts. Many thanks

If your employer is offering to pay your child care costs, in full or in part, then this will be treated as a benefit in kind and will be subject to tax & NI as the rest of your wages/salary are that you receive as an employee.

If you really are self employed (which I suspect you are not, at least not in regards to the work you perform for this agreement)then what would actually be your customer is not permitted to pay you expenses as such, at least not out of his business (i.e attempt to suggest they are a business expense).

It can only be a business expense if it is a contractual requirement to pay. Then you would invoice the customer for the cost and that would be treated as revenue, just like all other receipts.

wantoknow_2

Thank you very much for replies. I understand everything now. I am about to star so now can see which way to go